💥 Prime Day 2024: Record-breaking sales and shifts in consumer trends
Prime Day 2024 pushed US ecommerce to new levels, with online spending reaching $14.2 billion, an 11% increase from last year. Independent sellers on Amazon sold over 200 million items, mostly from small and medium-sized businesses. Mobile commerce made up nearly half of online purchases, while ‘buy now, pay later’ (BNPL) options added $1.08 billion to the total spend.
This year’s Prime Day showed changes in consumer behavior, driven by back-to-school shopping and a need for new tech gadgets. Shoppers chose new electronics over household essentials, marking a shift from last year’s focus on basics. Adobe Analytics credits this strong performance to consumers wanting to upgrade their devices.
Despite fewer big-ticket items and multiple orders, the average order size grew to $57.97, showing a trend toward more mindful shopping.
Jordi Vermeer,VP of Revenue North America
Prime Day was just the beginning. Prepare for peak season now with our free resources 📖.
🌎 Only 1% of U.S. Amazon sellers expand beyond North America
Despite Amazon's efforts to promote cross-border ecommerce, less than 1% of U.S. sellers venture outside the continent. Research by Marketplace Pulse shows that 12% of U.S. sellers target Amazon Canada, and 5% sell on Amazon Mexico, often using Remote Fulfillment with FBA to serve customers without sending inventory directly to these countries.
Amazon's largest international markets, including Japan, Germany, and the U.K., see minimal participation from U.S. sellers, with only a few thousand engaging in these regions. More sellers from Japan and the U.K. sell in the U.S. than vice versa. This limited cross-border activity highlights the challenges and opportunities within Amazon's global marketplace ecosystem.
While Amazon promotes its twenty-two marketplaces as a unified market managed through a single dashboard, the actual scenario differs. European businesses stay within Europe, Japanese companies focus on Japan, and U.S. sellers stick to North America. Despite the potential, managing sales across multiple continents remains a complex task, with international expansion posing significant competitive and logistical challenges.
Zoe Kruize,Account Executive North America
Here are the cross-border selling resources Zoe recommends:
📖The US marketplace strategy guide
📖 The European Marketplace Strategy Guide
📖 Selling into America: A Guide for European ecommerce brands
🆕 TikTok shop set to launch in Ireland and Spain this October
After pausing its European expansion, TikTok Shop is gearing up for an October launch in Ireland and Spain. This move follows initial rollouts in parts of Asia, the UK, and the US, with the European expansion previously delayed due to underwhelming results in the UK. ByteDance, TikTok’s parent company, aims to revive its ecommerce push in Europe, starting with these two countries and expanding further in 2025.
ByteDance is focusing on ensuring a smooth introduction, with a team of 40 ready in Spain and recruitment underway for various roles, including logistics and compliance. This strategic move is seen as an effort to boost TikTok Shop's presence while navigating regulatory landscapes in Europe. Merchants and creator agencies in Ireland and Spain have been notified to prepare for the upcoming launch.
A TikTok spokesperson emphasized the company's ongoing experimentation with commerce opportunities to support businesses and engage its community. This launch aims to provide Irish and Spanish users with a new way to discover and interact with products they love, reinforcing TikTok's commitment to expanding its ecommerce capabilities.
Get ahead of the curve. Learn how to sell on TikTok Shop and maximize your reach.
📱 Social media influences 21% of UK online shoppers
A significant 21% of UK online shoppers start their product searches on social media, although only 7% complete their purchases there. Most transition to retailer websites or apps to finalize their orders, as revealed by the 2024 Elusive Consumer Survey by Capterra, conducted with 499 UK adults in April.
Despite social media's growing role in shopping inspiration, traditional search engines still dominate, with 75% of consumers starting their online searches there. Retailer websites and apps also play a crucial role, being the most common platforms where purchases are completed. Instagram leads the pack for social media shopping, followed by Facebook and TikTok.
Social media serves as a valuable tool for discovering products, discounts, and new brands. Notably, 46% of shoppers use these platforms to find small or local brands. This trend highlights the potential for brands to leverage social media marketing to reach targeted and relevant audiences effectively.
📖 Unlock the power of social commerce with our comprehensive guide: Explore the social commerce guide.
📈 German ecommerce shows signs of growth
German ecommerce experienced its first market growth in two years, with online sales increasing by 0.2% in Q2 2024 compared to the same period last year. Despite a 1.2% decline in the first half of 2024, this marks a potential end to the downward trend reported by Bevh. Digital services, including travel bookings and ticket purchases, drove this growth, increasing by 4.2% in Q2 and 8.4% in H1.
Sales grew in 12 of the 19 surveyed product ranges, with food orders showing the strongest growth at 6.2%. Market normalization is underway, but uncertainties like geopolitical conflicts and economic instability pose potential risks. Online marketplaces, which grew 2.3% in Q2, played a significant role in this recovery, holding a 55% market share in H1 2024.
🔜 Boohoo marketplace to debut in August
Boohoo is launching its new marketplace, Boohoo Brands, on August 31, featuring a curated selection of 150 fashion, lifestyle, and beauty brands. This platform aims to be a "one-stop" destination, offering customers access to a variety of UK brands, including Revolution Beauty, L’Oréal Paris, and Ray-Ban. The marketplace leverages Boohoo's extensive network and technological capabilities to quickly onboard new brands and maintain strong partnerships.
Chief Product Officer James Blacklock emphasized the company's commitment to providing diverse and high-quality options for customers. By integrating various brands, Boohoo aims to enhance the shopping experience and solidify its position as a leading destination for UK consumers. The launch follows Boohoo’s strategic acquisition of Debenhams, aimed at capturing growth opportunities in the evolving online retail landscape.
Artan Recica,Manager New Channels
🤖 AI in ecommerce: Current applications and future prospects
AI is changing ecommerce by personalizing shopping experiences, enhancing customer service, and optimizing inventory management. From AI-powered recommendations to immersive AR shopping, these innovations are changing how consumers interact with online platforms. Future integrations promise even more exciting developments, reshaping the ecommerce landscape.
AI-driven tools are enhancing operational efficiency and customer engagement for sellers. Customized product recommendations improve user experience and increase conversions, with Amazon reporting 44% of its purchases stemming from AI suggestions. Visual search technologies, like those on Pinterest, allow users to find products through images, enriching the shopping journey.
Discover how ChannelEngine’s new feature, AI Category Mapping, can help you accelerate marketplace launches, reduce errors, and enhance scalability for large product catalogs.
🆕 ChannelEngine enhances Walmart marketplace integration with new features
ChannelEngine has upgraded its API integration with Walmart Marketplace, enabling sellers to streamline operations and enhance product visibility using Walmart Fulfillment Services (WFS) and Item Spec 5.0. This integration offers sellers a comprehensive solution for success, leveraging Walmart's vast logistics network.
WFS simplifies order fulfillment by handling picking, packing, shipping, delivery, customer support, and returns. With ChannelEngine's integration, sellers can manage inventory seamlessly, ensuring quick and reliable shipping through Walmart’s fulfillment centers. This results in increased customer satisfaction, cost-efficiency, and enhanced product visibility as items tagged "Fulfilled by Walmart" are prioritized in search results.
Item Spec 5.0, now supported by ChannelEngine, improves product listings on Walmart by enhancing content quality, relevance, and granularity. This update helps sellers achieve more precise item attribution and ensures listings appear in the correct categories. The integration makes Walmart Marketplace maintenance easier, allowing sellers to upload single items or bulk additions with ease, maximizing their potential in the competitive ecommerce landscape.
Read more about this here.
